Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Which financial statement correctly lists a company's assets and liabilities at a specific point in time?

Income Statement

Balance Sheet

Statement of Cash Flows

Statement of Retained Earnings

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Verified step by step guidance

Understand the purpose of each financial statement: The Income Statement shows a company's revenues and expenses over a period of time, the Statement of Cash Flows details cash inflows and outflows, and the Statement of Retained Earnings explains changes in retained earnings. The Balance Sheet, however, provides a snapshot of a company's financial position at a specific point in time.

Recognize that the Balance Sheet is structured into three main sections: assets, liabilities, and equity. Assets represent what the company owns, liabilities represent what the company owes, and equity represents the residual interest of the owners.

Note that the Balance Sheet follows the accounting equation: \( \text{Assets} = \text{Liabilities} + \text{Equity} \). This equation ensures that the financial position is balanced.

Identify that the Balance Sheet is prepared as of a specific date, unlike other financial statements that cover a period of time. This makes it the correct statement for listing assets and liabilities at a specific point in time.

Conclude that the Balance Sheet is the financial statement that correctly lists a company's assets and liabilities at a specific point in time, as it provides a snapshot of the company's financial position on a given date.